Japan's key inflation gauge remained unchanged at 3% for the second consecutive month, signaling persistent price pressures. The Bank of Japan is widely expected to raise borrowing costs for the first time since January later today.
Data released Friday by Japan's Ministry of Internal Affairs showed consumer prices excluding fresh food rose 3% year-on-year in November, matching October's pace and meeting economists' median forecast.
The headline inflation rate also aligned with analysts' 2.9% projection, while the CPI measure excluding energy prices showed a slight deceleration to 3% growth.
Within hours, the BOJ is anticipated to lift its benchmark rate to 0.75%, which would mark the highest level in three decades. All 50 economists surveyed predicted this move. As the central bank continues steering policy toward neutral territory, Friday's data may shift investor focus to the pace of subsequent rate hikes through 2026.
Core inflation has now stayed at or above the BOJ's 2% target for 44 straight months.
Market participants will closely monitor BOJ Governor Kazuo Ueda's remarks scheduled for later Friday. His post-decision press conference in Tokyo (15:30 local time) may reveal the bank's 2025 tightening trajectory through any comments expressing concern about sticky inflation.
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